This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Rocket Stocks to Buy Before They Blast Off

Bank of America

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Bank of America ( BAC) has been a stranger to our Rocket Stocks list for the past several years -- and for good reason. The risk-reward tradeoff in the country's biggest banks haven't looked all that appealing for a while now. After all, regional banking names offer similar exposure with bigger dividend payouts and fatter margins, while avoiding the headline risk inherited from problematic acquisitions made in the heat of the financial crisis.

But BofA is starting to look attractive again.

>>5 REITs Income Investors Love

One of the biggest reasons for BAC's sudden attractiveness is the fact that it's already taken the kicks in the teeth that came with writing off billion of dollars in debts and shaking the skeletons out of its labyrinthine balance sheet. Investors today get to jump in to a firm that's already done most of the hard work. The Fed continues to be a major boon for the banking sector. As long as money remains effectively free, BAC is able to earn hefty margins, especially now that mortgage rates are becoming upwardly mobile again. While we're not headed for another high-rate environment anytime in the foreseeable future, banks still don't need high rates to earn high returns.

Lots of regulatory eyes on BofA means that the firm won't be allowed to repeat its mistakes of the past anytime soon. While it also means that shareholder returns will be an afterthought for regulators, BAC has plenty of internal investment options as it rebuilds its coffers. And with a strong investment business in play right now, a rising market tide should continue to lift shares of Bank of America in 2013.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $127.94 -0.47%
BAC $15.86 0.10%
BBRY $10.87 0.28%
HD $115.53 0.67%
VALE $6.64 -3.50%


DOW 18,141.82 +44.92 0.25%
S&P 500 2,099.71 +1.18 0.06%
NASDAQ 4,978.2450 +11.1040 0.22%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs